QUOTE (ThomasBeyer @ Feb 8 2010, 06:17 PM) I expect a DROP of price for 3-6 months after the event due to
a) glut of condos coming on market in Olympic Village (7000+) and
b) HST on July 1, 2010, and
c) too strong a rise from 1Q 2009 to 1Q 2010 already .. way too fast for any real economic recovery, and
d) higher unemployment in Vancouver area right after the event
HOWEVER, long term Vancouver is still the Switzerland of North America due to mild climate, world class city, ocean, mountains, no land south, no land west, no land north, agricultural land reserve, tight building restrictions .. so while Vancouver might temporarily drop it will always be attractive, and thus APPRECIATING over the long term !
Olympic impact on rest of West will be minor .. exposure does help .. but most folks know where Vancouver or Calgary is (not so sure re Saskatoon, Winnipeg or Edmonton ..)
Thomas, the Olympic Village is 1,100 units. Most priced around $800 to over $1,000 per sf.
About 1/3 have been pre-sold. The city seems determined to release them in phases once the games are over (in order to not flood the market).
That being said, there are dozens of other condo projects starting up or in progress.
In fact, I predict the city will be more lenient in handling out construction permits and allowing condos to go higher and higher in the near future.
The main reason is they need to make up a huge revenue shortfall.
Foreign buying is definitely having an effect especially in the higher end product forcing locals to bid up the prices on the lower end.
Seems Vancouver is developing a reputation as being a playground for rich foreigners and jet setting crowd.
Affordability-wise, locals are pretty much priced out. Wages are stagnant and unemployment will begin to pick up.
Even with foreign money at play, I predict a correction of around 15% to be played out in the next 2 to 3 years.
It will be interesting to see how the foreign demand balances out the falling local demand.
Perhaps another global credit crisis will take the wind completely out of the foreign sails.